Islamabad:
The Government reduced the price of gasoline at RS7.54 per liter while increasing the high -speed diesel (HSD) in RS1.48 per liter for the next fortnight.
The HSD price increase will enter into force as of August 1, 2025. However, it has reduced the price of gasoline for the next fortnight that will remain effective until August 15.
The Ministry of Finance in a statement said that the Government of the Pakistan Finance Division has announced new prices of oil products that will enter into force as of August 1, 2025.
He said that prices changes were determined after reviewing international market trends and considering the recommendations of the Petroleum and Gas Regulatory Authority (OGRA) and other relevant ministries.
According to the statement, HSD’s price has witnessed an increase in RS1.48 per liter, carrying the new price at RS285.83. The existing price was RS284.35 per liter.
The government has decreased the price of gasoline in RS7.54 per liter. Gasoline will now be available at the new price of RS264.61 per liter. The previous price was RS272.15 per liter. These reviewed prices will be in force for the next fortnight.
Previously, consumers had witnessed a massive increase in oil -derived products prices, since the government had increased the HSD price in RS10.39 per liter as of July 1, 2025.
High speed diesel is widely used in agriculture and transport sectors. Therefore, the new increase in its price will bring an inflational impact for consumers.
Farmers use this fuel for tractors, while the transport sector also uses it. Therefore, the cost of transport goods would increase, which would result in greater inflation throughout the country.
The government has also increased the price of gasoline at RS8.36 per liter from July 1.
Gasoline is used in motorcycles and cars and is considered an alternative of compressed natural gas (CNG).
Gas service companies had stopped the indigenous gas supply to CNG stations, especially in the Punjab province and, therefore, these CNG points of sale had been using imported gas for a decade.
The recent reduction in the price of gasoline is a great relief for motorcycles and cars.
Pakistan is a net oil and import importer about 85 percent of the total oil products to meet national needs. Local oil and gas exploration companies produce crude oil to meet 15 percent of total oil needs.
Therefore, fluctuation in global oil prices also affect national oil prices.
Consumers are also paying a higher tax in the form of oil tax in oil products. They are paying more than 77 rupees per liter of oil and gasoline oil.
LPG prices
The Petroleum and Gas Regulatory Authority (OGRA) has also significantly reduced the price of liquefied oil gas (LPG) for the month of August 2025 to provide relief to consumers in the midst of continuous inflationary pressures.
According to the latest notification issued by the authority, the regulator has established a new consumer price of LPG at RS2,541.36 for a domestic cylinder of 11.8 kg as of August 1, 2025 with a reduction of RS209.24 or 7.6 percent compared to the RS2,750.60.60 of July RS.
The price of the producer PLPG has also been reduced from RS191,802.01 per ton in July to RS174.069.26 per ton in August, which reflects a similar decrease of RS17,732.75. The decrease translates into a reduction of RS17.73 per kg in the price of LPG consumer.
Ogra stated that price reduction is mainly a 9.8pc decrease in the price of the Saudi Aramco (CP) contract, which serves as a point of reference for LPG’s local prices. Although the average exchange rate of the US dollar registered a marginal increase of 0.38% during the same period, it was not enough to compensate for the downward trend in international LPG prices.
